GARDEN GROVE – The Roman Catholic Diocese of Orange received the necessary approval this week from the Vatican to proceed with its purchase of the Crystal Cathedral at $57.5 million, officials said Wednesday.

The Pope's approval, which came on Monday, is the last hurdle the diocese had to clear before sealing the deal, said Monsignor Douglas Cook, the diocese's Canon Law expert and rector of Holy Family Cathedral in Orange.

The Vatican's order giving its blessing to the diocese is known as a "nihil obstat" in Latin, which means "nothing stands in the way."

The financially ailing Crystal Cathedral, which was founded by Rev. Robert H. Schuller, filed for Chapter 11 bankruptcy on Oct. 18, 2010. The diocese and Chapman University engaged in a bidding war before the Cathedral's board made an eleventh hour decision to switch sides and support the diocese's plan. The board had voted in favor of Chapman's plan on two prior occasions. A bankruptcy court judge approved the diocese's plan during a confirmation hearing on Nov. 17.

Monsignor Cook said the process to get the Vatican's approval was long and complex. The cathedral's purchase had to be voted on by two advisory committees under the Bishop of Orange.

"They voted on it several times because the price kept changing," he said.

The diocese then sent over a thick dossier detailing its financial plan to purchase the Crystal Cathedral among other things, Cook said.

"The Vatican's Congregation for Clergy Office then came back to us with some questions they had," he said. "We sent the answers and shortly thereafter, received the approval."

Cook said these procedures are in place to make sure there are checks and balances at all levels.

"The Vatican's role is basically to make sure that we have thought of everything – the rationale and the financial plan – before we undertake something of this magnitude," he said.

The ministry will be able to remain on campus for at least three years. After that, they must decide whether to rent the St. Callistus property on Lewis Street or move elsewhere.

On Nov. 22, Chapman made a last-ditch proposal to buy the Crystal Cathedral for $59 million, a plan that was voted down by the board the same day. That proposal gave the Crystal Cathedral Ministries the option to buy back the property for $30 million. Chapman offered to finance all the repurchase over 30 years without a down payment.

The plan proposed a mortgage interest rate of 4 percent for the first five years with $100,000 monthly payments and 6 percent for each year after that.

Chapman University's President James Doti said the university made the proposal because they heard Senior Pastor Sheila Schuller Coleman praying for a miracle during Sunday services and also from congregants who wanted their church back.

"We thought, perhaps, this was the miracle the ministry was praying for, but apparently, it wasn't," Doti said.

Had the board voted in favor of the plan, the ministry would have had to go back to court and present a change of plan to the judge, he said. Doti said Chapman never intended to appeal the bankruptcy court's decision.

Many congregants spoke at the Nov. 17 hearing in favor of Chapman's plan because they wanted to retain their iconic cathedral and its world-renowned "Hour of Power" program which they felt was inextricably connected to the famous buildings.

Also on Monday, Newport Beach-based Greenlaw Partners LLC filed a claim seeking $920,000 as a "break-up fee." The developer proposed building hundreds of apartments on the Crystal Cathedral campus and had offered a purchase price of $46 million with a leaseback and buyback option. Although the ministry initially filed a plan in support of Greenlaw's offer in May, it withdrew that proposal within a month.

The Vatican has given its approval to the Roman Catholic Diocese of Orange to purchase the Crystal Cathedral at a price of $57.5 million. ANA VENEGAS, THE ORANGE COUNTY REGISTER
The main hall of St. Callistus Catholic Church in Garden Grove. This may become the future home of the Crystal Cathedral ministry. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
The Crystal Cathedral can be seen from the parking lot of St. Callistus Catholic Church in Garden Grove. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
St. Callistus Catholic Church in Garden Grove. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
The chapel at St. Callistus Catholic Church in Garden Grove features many stained glass features. This is the main sky light. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
The Crystal Cathedral can be seen from the parking lot of St. Callistus Catholic Church in Garden Grove. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Congregants go up to the alter to take a nail as a reminder of sacrifice and to greet Sheila Schuller Coleman pictured on the screen at right. ANA VENEGAS, THE ORANGE COUNTY REGISTER
Robert H. Schuller ANA VENEGAS, FILE: THE ORANGE COUNTY REGISTER
The main hall of St. Callistus Catholic Church in Garden Grove. This may become the future home of the Crystal Cathedral ministry. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER

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